Woodside is California dreaming

Woodside Natural Gas Inc., a wholly owned subsidiary of Australian energy company Woodside Petroleum Ltd., has announced plans to seek approval for an offshore sea-to-land pipeline off the coast of California.

Offshore staff

(Los Angeles)- Woodside Natural Gas Inc., a wholly owned subsidiary of Australian energy company Woodside Petroleum Ltd., has announced plans to seek approval for an offshore sea-to-land pipeline off the coast of California.

The project, known as OceanWay, would use state-of-the-art technology to bring natural gas from 15 mi off the coast of California to storage facilities on land. The project calls for Woodside's gas supplies from North Western Australia to be converted into liquefied natural gas (LNG) and then delivered off the coast of California via ship. The LNG would then be converted back to regular gas at sea on board the ship, and this gas would then be shipped to shore via standard pipeline facilities.

A project such as this would significantly ease California's energy worries, as the state currently imports over 80% of its natural gas from the GoM, Canada and the Rockies. As those supplies have been declining, natural gas costs have increased dramatically.

Woodside is currently considering several sites off the coast of California. The criteria they are using to select a site include a location remote from populated areas, minimum onshore disruption and safe oceanographic conditions. Once a location is found and a permit application is filed, Woodside will seek approval from federal, state and local agencies, including the U.S. Coast Guard and the California State Lands Commission, before the project proceeds.

Jane Cutler, president of Woodside Natural Gas, said of the project, "We have the experience and expertise. We look forward to working with regulators, policy makers, agencies and communities to develop a safe, reliable project that is the best natural gas solution for California."

01/19/2006

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